3 AI stocks that are being overlooked by growth investors

as Artificial intelligence (AI) Megatrends continue to fascinate investors – Nvidia (NVDA) Still in the spotlight – Citigroup strategists led by Drew Pettit recently made the case for acquiring “the next sector of the artificial intelligence industry.”

Highlighting the “risk of micro-bubbles” in some areas of the market, Presented a list of AI stocks It is broken down into enablers, creators, and users, suggesting that growth investors should focus on stocks that are still trading at reasonable prices. The first screen under the “Creators” umbrella is Bill Holdings, Inc. (invoice) and Smartsheet Inc. (smar) It's in Citi's “Affordable AI Stocks” basket.

Additionally, the strategists stressed that investors often overlook many international names in favor of U.S. stocks, pointing to Israel-based Wix.com Ltd. (wicks) is another attractive option alongside its US peers Bill Holdings and Smartsheet.

Let's take a closer look at these stocks.

AI Stock #1: Bill Holdings

Building Holdings Co., Ltd. (invoice)is headquartered in San Jose, California and provides financial automation software for small and medium-sized businesses around the world. The company offers Software-as-a-Service, cloud-based payments, and spend management products.Furthermore, the AI-enabled software Provides a link between suppliers and clients.

Bill is proud of 470,000 clients We are continually adding thousands of new clients using our Software-as-a-Service plan. Its network includes his 5.8 million members, including more than 7,000 accounting firms and major financial institutions such as JPMorgan Chase & Co. (JPM) and Wells Fargo & Company. (WFC).

The company also appears poised to take advantage of the significant opportunities presented by the ongoing shift among small and medium-sized businesses away from manual payment processing methods such as check writing.

It is valued at a market capitalization of $6.7 billion, BILL Holdings fell 11.5% Over the past 52 weeks.

The company's stock currently trades at 6.25x, a significant premium compared to more established peers like Paypal. (PYPL) and square (SQ)However, it is significantly cheaper than Shopify's sales multiple of 13.7x. (shop).

among them Second quarter financial report The payments and invoicing software maker's revenue, announced on Feb. 8, rose 22% year over year to $318.5 million, beating Wall Street estimates by 6.8%. Non-GAAP net income per share of $0.63 also exceeded analyst estimates by 57.2%.

The company expects third-quarter revenue to be in the range of $299 million to $309 million, with non-GAAP net income per diluted share in the range of $0.48 to $0.57. Expect. Analysts tracking Bill Holdings expect the company to post earnings of $0.03 per share in 2019. 2024.

BILL has an overall consensus rating of Moderate Buy. Of the 24 analysts covering the stock, 13 rate it as a “strong buy,” one rated it a “moderate buy,” nine rated it a “hold,” and one rated it a “strong sell.” .

of Analyst average price target Bill Holdings' stock price is $93.05, representing a 39.9% upside potential. The street-high price target of $136 suggests 104.6% upside potential.

AI Stock #2: Smartsheet

Bellevue, Washington-based Smartsheet Inc. (smar) is a cloud-based platform that helps businesses manage and streamline their workflows. Users can create, automate, and track projects ranging from simple task lists to complex workflows using familiar spreadsheet-like formats, cards, calendars, and other tools. With 90% of Fortune 100 companies on its customer list, Smartsheet aims to further expand by providing AI-powered collaborative workflow solutions and tapping into a large addressable market.

Smartsheet's automation capabilities streamline your workflow by automating repetitive tasks and integrating with various third-party applications, including Microsoft. (MSFT) 365, alphabetical (Google) Google Workspace and Salesforce (CRM) slack.

It is valued at a market capitalization of $5.3 billion, Smartsheet fell 12.6% Over the past 52 weeks.

SMAR is valued at approximately 5.5x sales and is priced in line with peers such as Asana (Ayama)and cheaper than rivals like Monday.com (Mundi).

the 4th quarter results, reported on March 15, is proof that demand is growing. “Strong demand from our enterprise customers enabled us to reach a major milestone in the fourth quarter of $1 billion in annual recurring revenue,” said Mark Mader, CEO of Smartsheet.

Total revenue for the fourth quarter was $256.9 million, up 21% year-over-year, slightly above analyst expectations, and non-GAAP net income per share of $0.34 significantly exceeded analyst expectations. . Free cash flow was $56.3 million, representing 22% of total revenue.

The company expects first quarter sales to be in the following range: $257 million and $259 millionThe company expects full-year sales to be between $1.11 billion and $1.12 billion. Smartsheet expects full-year earnings to range from $1.06 to $1.13 per share on an adjusted basis.

SMAR has an overall consensus rating of Strong Buy. Of the 18 analysts covering the stock, 13 rate it a “strong buy,'' 1 rate it a “moderate buy,'' 3 rate it a “hold,'' and 1 rate it a “moderate sell.'' There is.

of Analyst average price target Smartsheet's price is $50.12, indicating 26.4% upside potential. The high price target of $63 implies an upside potential of 58.9%.

AI Stock #3: Wix.com

Wix.com Ltd. is headquartered in Tel Aviv. (wicks)has a market capitalization of $7.5 billion and is a website creation platform that allows users to create sites without any coding or design skills. From advanced SEO and marketing tools to enterprise-grade business features, we offer complete solutions to help users build professional websites.

Wix.com Stock 45.7% increase over the past 52 weeksoutperforms the S&P 500 Index ($SPX) 26.7% increase over the same period.

The stock is currently trading at Forecast PER is 115.81 timesat 4.82x sales, which is roughly in line with peers such as SHOP and Squarespace. (SQSP).

of The company reported fourth quarter results Sales on Feb. 21 rose 13.7% to $403.8 million, beating Wall Street expectations. Adjusted EPS was $1.22, beating analyst estimates by 24.5%.

Wix.com introduced new generative AI and AI tools, including AI Chat Experience for Business, AI Code Assistant, and AI Site Generator, to positive feedback from users. “These milestone products and our upcoming product pipeline provide continued momentum and benefits to accelerate growth in 2024,” said Abishai Abrahami, co-founder and CEO of Wix. I look forward to promoting this.”

Wix.com expects 2024 revenue to be between $1.73 billion and $1.76 billion, an increase of 11% to 13% year-over-year. Analysts tracking Wix.com expect EPS to be: 73.1% growth in FY2024 In 2025, it will be 117.2%.

WIX has an overall consensus rating of Strong Buy. Of the 18 analysts covering the stock, 12 recommend a “strong buy,” three recommend a “moderate buy,” and three recommend a “hold.”

of Analyst average price target Wix.com's price is $152.24, indicating an 11.9% upside potential. The high price target of $175 suggests 28.6% upside potential.

On the date of publication, Shristi Suman Jayaswal I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Summarize this content to 100 words
as Artificial intelligence (AI) Megatrends continue to fascinate investors – Nvidia (NVDA) Still in the spotlight – Citigroup strategists led by Drew Pettit recently made the case for acquiring “the next sector of the artificial intelligence industry.”Highlighting the “risk of micro-bubbles” in some areas of the market, Presented a list of AI stocks It is broken down into enablers, creators, and users, suggesting that growth investors should focus on stocks that are still trading at reasonable prices. The first screen under the “Creators” umbrella is Bill Holdings, Inc. (invoice) and Smartsheet Inc. (smar) It's in Citi's “Affordable AI Stocks” basket.

Additionally, the strategists stressed that investors often overlook many international names in favor of U.S. stocks, pointing to Israel-based Wix.com Ltd. (wicks) is another attractive option alongside its US peers Bill Holdings and Smartsheet.Let's take a closer look at these stocks.AI Stock #1: Bill HoldingsBuilding Holdings Co., Ltd. (invoice)is headquartered in San Jose, California and provides financial automation software for small and medium-sized businesses around the world. The company offers Software-as-a-Service, cloud-based payments, and spend management products.Furthermore, the AI-enabled software Provides a link between suppliers and clients.Bill is proud of 470,000 clients We are continually adding thousands of new clients using our Software-as-a-Service plan. Its network includes his 5.8 million members, including more than 7,000 accounting firms and major financial institutions such as JPMorgan Chase & Co. (JPM) and Wells Fargo & Company. (WFC).The company also appears poised to take advantage of the significant opportunities presented by the ongoing shift among small and medium-sized businesses away from manual payment processing methods such as check writing. It is valued at a market capitalization of $6.7 billion, BILL Holdings fell 11.5% Over the past 52 weeks.

www.barchart.com
The company's stock currently trades at 6.25x, a significant premium compared to more established peers like Paypal. (PYPL) and square (SQ)However, it is significantly cheaper than Shopify's sales multiple of 13.7x. (shop).among them Second quarter financial report The payments and invoicing software maker's revenue, announced on Feb. 8, rose 22% year over year to $318.5 million, beating Wall Street estimates by 6.8%. Non-GAAP net income per share of $0.63 also exceeded analyst estimates by 57.2%.The company expects third-quarter revenue to be in the range of $299 million to $309 million, with non-GAAP net income per diluted share in the range of $0.48 to $0.57. Expect. Analysts tracking Bill Holdings expect the company to post earnings of $0.03 per share in 2019. 2024.BILL has an overall consensus rating of Moderate Buy. Of the 24 analysts covering the stock, 13 rate it as a “strong buy,” one rated it a “moderate buy,” nine rated it a “hold,” and one rated it a “strong sell.” . of Analyst average price target Bill Holdings' stock price is $93.05, representing a 39.9% upside potential. The street-high price target of $136 suggests 104.6% upside potential.

www.barchart.com
AI Stock #2: SmartsheetBellevue, Washington-based Smartsheet Inc. (smar) is a cloud-based platform that helps businesses manage and streamline their workflows. Users can create, automate, and track projects ranging from simple task lists to complex workflows using familiar spreadsheet-like formats, cards, calendars, and other tools. With 90% of Fortune 100 companies on its customer list, Smartsheet aims to further expand by providing AI-powered collaborative workflow solutions and tapping into a large addressable market.Smartsheet's automation capabilities streamline your workflow by automating repetitive tasks and integrating with various third-party applications, including Microsoft. (MSFT) 365, alphabetical (Google) Google Workspace and Salesforce (CRM) slack.It is valued at a market capitalization of $5.3 billion, Smartsheet fell 12.6% Over the past 52 weeks.www.barchart.com
SMAR is valued at approximately 5.5x sales and is priced in line with peers such as Asana (Ayama)and cheaper than rivals like Monday.com (Mundi). the 4th quarter results, reported on March 15, is proof that demand is growing. “Strong demand from our enterprise customers enabled us to reach a major milestone in the fourth quarter of $1 billion in annual recurring revenue,” said Mark Mader, CEO of Smartsheet.

Total revenue for the fourth quarter was $256.9 million, up 21% year-over-year, slightly above analyst expectations, and non-GAAP net income per share of $0.34 significantly exceeded analyst expectations. . Free cash flow was $56.3 million, representing 22% of total revenue.The company expects first quarter sales to be in the following range: $257 million and $259 millionThe company expects full-year sales to be between $1.11 billion and $1.12 billion. Smartsheet expects full-year earnings to range from $1.06 to $1.13 per share on an adjusted basis. SMAR has an overall consensus rating of Strong Buy. Of the 18 analysts covering the stock, 13 rate it a “strong buy,'' 1 rate it a “moderate buy,'' 3 rate it a “hold,'' and 1 rate it a “moderate sell.'' There is. of Analyst average price target Smartsheet's price is $50.12, indicating 26.4% upside potential. The high price target of $63 implies an upside potential of 58.9%.www.barchart.com
AI Stock #3: Wix.comWix.com Ltd. is headquartered in Tel Aviv. (wicks)has a market capitalization of $7.5 billion and is a website creation platform that allows users to create sites without any coding or design skills. From advanced SEO and marketing tools to enterprise-grade business features, we offer complete solutions to help users build professional websites.

Wix.com Stock 45.7% increase over the past 52 weeksoutperforms the S&P 500 Index ($SPX) 26.7% increase over the same period.www.barchart.com
The stock is currently trading at Forecast PER is 115.81 timesat 4.82x sales, which is roughly in line with peers such as SHOP and Squarespace. (SQSP).of The company reported fourth quarter results Sales on Feb. 21 rose 13.7% to $403.8 million, beating Wall Street expectations. Adjusted EPS was $1.22, beating analyst estimates by 24.5%.Wix.com introduced new generative AI and AI tools, including AI Chat Experience for Business, AI Code Assistant, and AI Site Generator, to positive feedback from users. “These milestone products and our upcoming product pipeline provide continued momentum and benefits to accelerate growth in 2024,” said Abishai Abrahami, co-founder and CEO of Wix. I look forward to promoting this.”Wix.com expects 2024 revenue to be between $1.73 billion and $1.76 billion, an increase of 11% to 13% year-over-year. Analysts tracking Wix.com expect EPS to be: 73.1% growth in FY2024 In 2025, it will be 117.2%.

WIX has an overall consensus rating of Strong Buy. Of the 18 analysts covering the stock, 12 recommend a “strong buy,” three recommend a “moderate buy,” and three recommend a “hold.”of Analyst average price target Wix.com's price is $152.24, indicating an 11.9% upside potential. The high price target of $175 suggests 28.6% upside potential.
www.barchart.com
On the date of publication, Shristi Suman Jayaswal I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

https://www.nasdaq.com/articles/3-overlooked-ai-stocks-for-growth-investors 3 AI stocks that are being overlooked by growth investors